SENATE BILL 398

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Anthony L. Thornton and Jay C. Block and Pat Boone

and Steve D. Lanier and David M. Gallegos

AN ACT

RELATING TO TAX REBATES; CREATING THE CITIZEN INCOME TAX REBATE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] CITIZEN INCOME TAX REBATE.--

          A. For taxable years prior to 2033, a resident who is a citizen of the United States, who files an individual New Mexico income tax return and who is not a dependent of another individual is eligible for a tax rebate pursuant to this section in an amount equal to five hundred dollars ($500) plus five hundred dollars ($500) for each dependent claimed by the taxpayer in the taxable year plus five hundred dollars ($500) for the taxpayer's spouse if the taxpayer is married and filing a joint return. The rebate provided by this section may be referred to as the "citizen income tax rebate".

          B. The rebate shall not be allowed for a return filed after May 31 of the year following the taxable year for which the rebate is claimed. Rebates shall be provided by the department as soon as practicable.

          C. The rebate shall not be allowed for a taxpayer who was an inmate of a public institution for more than six months during the taxable year for which the tax rebate could be claimed or who was not physically present in New Mexico for at least six months during the taxable year for which the tax rebate could be claimed.

          D. The rebate may be deducted from the taxpayer's New Mexico income tax liability. If the amount of rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.

          E. The department may require a taxpayer to claim a rebate on forms and in a manner required by the department.

          F. The rebate shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the rebate."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2025.

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